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IRS Proposes Tax Incentives for Climate Projects

The Internal Revenue Service (IRS) proposed regulations for the Inflation Reduction Act’s (IRA’s) elective pay provision (commonly known as direct pay). Certain entities exempt from federal tax, such as states; cities; tribes; territories; and nonprofit organizations, including hospitals, can access 12 of the IRA’s clean energy tax credits, including the production and investment tax credits. Comments on the proposed rule are due Aug. 14.

For more information on how to apply, visit the White House website and the IRS website. The Office of Climate Change and Health Equity also will hold a June 22 webinar, Tax Incentives for Climate Action.

Contact Senior Director of Policy Erin O’Malley at or 202.585.0127 with questions.


About the Author

Julie Kozminski is a senior policy analyst at America's Essential Hospitals.

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